20070823final_order_no_30410.pdf

Office of the Secretary
Service Date
August 23, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
CITIZENS TELECOMMUNICATIONS OF
IDAHO DBA FRONTIER COMMUNICATIONS
OF IDAHO FOR AN INVESTMENT TAX
CREDIT FOR INSTALLING QUALIFIED BROADBAND EQUIPMENT
CASE NO. CTC- T -07-
ORDER NO. 30410
On July 10, 2007, the Commission received an Application from Citizens
Telecommunications of Idaho dba Frontier Communications of Idaho (Frontier) asking for
approval of equipment for the broadband tax credit pursuant to Order No. 28784 and Idaho Code
9 63-30291(4). The 2006 broadband investment identified in Frontier s July 10 Application is in
addition to equipment identified in an earlier Application. The Commission confirmed in Order
No. 30341 that the equipment identified in the Company s April 18, 2007 Application qualifies
for an Idaho broadband tax credit.
To be eligible for the tax credit, the taxpayer must obtain an Order from the
Commission confirming that the equipment has been installed and that it meets the definition of
qualified broadband equipment set out in Idaho Code 9 63-30291(3)(b). Qualified broadband
equipment must be capable of transmitting signals at a rate of at least 200 000 bits per second
(bps) to a subscriber and at least 125 000 bps from a subscriber. The qualified broadband
equipment must also "be necessary to the provision of broadband service and an integral part of a
broadband network." Idaho Code 9 63-30291(3)(b)(i). In this Order, we find that Frontier
investment meets the applicable standards.
THE APPLICATION
Frontier s July 10 Application identifies the Company additional broadband
investments for the year 2006. Staff requested and received a revised itemization of equipment
that will provide Asymmetric Digital Subscriber Line (ADSL) service to customers in McCall
Cascade, Donnelly, Homedale, New Meadows, Horseshoe Bend, and Garden Valley exchanges.
Frontier states the new equipment will allow network transmission rates of up to 512 Kbps for
uploads from customers, and 3 Mbps for downloads to customers. The Company indicated the
equipment is necessary and integral to its broadband network. The Company claims that 100%
ORDER NO. 30410
of the identified investment will be used to provide service to Idaho customers. The Application
identified approximately $500 000 of additional investment in broadband facilities in 2006.
STAFF REVIEW
To implement its responsibilities under Idaho Code 9 63-30291, the Commission
issued Procedural Order No. 28784 in July 2001. This Order identifies information that must be
included in an application for a broadband tax credit. Once the information is filed with the
Commission, the Staff reviews the application and submits a recommendation to the
Commission. Staff has reviewed the list of proposed broadband equipment submitted by
Frontier and believes that the equipment identified meets the statutory criteria. Staff therefore
recommended approval of the Application and further recommended that the Commission
forward an approving Order along with a copy of the original Application to the Idaho State Tax
Commission.
COMMISSION FINDINGS
Having reviewed Frontier s Application and Staff s recommendation, we find that the
Application for a qualifying broadband equipment Order should be granted. The Company has
demonstrated that it installed qualifying broadband equipment identified in its Application
during 2006 in conformance with Idaho Code 9 63-30291. We further find that as configured
the installed equipment is an integral part of a broadband network necessary to deliver broadband
services to Idaho customers. The Commission accordingly issues this Order confirming that
Citizens Telecommunications of Idaho dba Frontier Communications of Idaho has installed
qualified broadband equipment as a precondition to seeking an Idaho broadband tax credit. The
Commission makes no findings regarding the costs of the installed broadband equipment.
ORDER
IT IS HEREBY ORDERED that Citizens Telecommunications of Idaho dba Frontier
Communications of Idaho s Application for an Order certifying that it has installed qualifying
broadband equipment is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the Application
be served upon the Idaho State Tax Commission.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) may petition for reconsideration within twenty-one (21) days of the
service date of this Order with regard to any matter decided in this Order. Within seven (7) days
ORDER NO. 30410
after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 99 61-626, 63-30291(4).
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :lJ.
day of August 2007.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~ill Je D. JewellCo ission Secretary
bls/O:CTC-O7-02 ws2
ORDER NO. 30410